Maryland House Approves Prescription Drug Discount; Bill ‘Differs Markedly’ From Senate-Approved Measure

The Maryland House of Delegates voted unanimously to approve a bill that would give seniors and low-income individuals up to 30% discounts on prescription drugs, the Baltimore Sun reports. All seniors and people earning up to 300% of the federal poverty level, or individuals with an annual income of $25,770, would be eligible for the program, which requires pharmacies and drug manufacturers to discount drug prices. About 292,000 Marylanders would be eligible to receive the discounts. The bill also would spend $23 million to expand an existing state insurance program to cover up to 50,000 people. Participants in this program would receive up to $1,200 annually in drug benefits after paying a premium of $10 a month and copayments of $10 for generic drugs and $20 for brand-name prescriptions. Funding for the expansion would not come from the state, but rather from cutting hospital rates that discount insurance carriers currently receive in return for providing coverage for those "who could not otherwise obtain coverage." The Sun reports that the House bill "differs markedly" from a drug plan the state Senate passed on March 20. Unlike the House bill, the Senate version uses state funds and appropriates $20 million to expand existing programs to provide drug coverage for an additional 72,000 people. While legislators must resolve differences in the legislation before the Legislature adjourns on April 9, any state funding must be including in a supplemental budget from Gov. Parris Glendening (D), who is "unlikely" to include the $20 million that the Senate bill requires (Barker, Baltimore Sun, 3/24).

Rx Plan Too Costly?
With Maryland's health care system reaching "Code Red status," the state should be cautious in creating a new commitment that it "may not be able to drop," deputy editorial page editor Barry Rascovar writes in a Sun opinion piece. With the state "up to its neck" in "underfunded" health care programs, Rascovar states that any new or temporary programs for prescription drugs will build pressure for "more state subsidies" resulting in a bigger financial burden. In addition, if the federal government does not enact prescription drug legislation, the state will be "boxed in" as a "major prescription drug partner." Rascovar notes that with 40% of the hospitals in the state losing money and several health care programs "dreadfully underfund[ed]," including care for the mentally ill, developmentally disabled and nursing home residents, the state is "in no position to underwrite another expensive service." Instead, the state should focus on "rescu[ing] imperiled medical programs," before patient care is affected. Rascovar concludes: "Yet now [legislators] want state government to jump into the highly expensive prescription drug controversy. That may be a bridge too far, especially in a state that hasn't faced up to its other health care obligations" (Rascovar, Baltimore Sun, 3/25).